HB3937 Summary

• Authorizes the Judges Retirement System of Illinois to establish and administer a self-managed (defined contribution) plan as an alternative to the traditional defined benefit retirement program.

• Newly eligible judges are automatically enrolled in the self-managed plan; currently eligible judges may elect to participate in either the traditional benefit package or self-managed plan within 5 years of the plan's adoption.

• Self-managed plan allows participants to accumulate retirement assets through employer and employee contributions invested in mutual funds, collective investment funds, or other investment products, with the option to purchase annuity contracts.

• Participants in the self-managed plan receive employer contributions equal to the regular employer contribution that would fund the actual regular cost for each year of service credit, plus a portion of their own contributions may be used for disability benefits.

• Changes establishing the self-managed plan are exempt from the 5-year expiration provision applicable to new benefit increases under the Illinois Pension Code.